CDB invests $242m in VC-backed eHi Car Services

Under the agreement, eHi and CDB will cooperate in various areas, including vehicle fixed-asset investment. "This agreement will create further economies of scale by enabling the expansion of our network and fleet, while also fulfilling our future business development needs," Ray Zhang, eHi's chairman and CEO, said in a statement.

EHi was founded in 2006 and went public in the US in November of last year. It has grown to include more than 1,200 service centers across 100 cities in China. The company offers individual car rentals and also partners with businesses that operate in China, with both self-drive and chauffeured car options available.

In May, Tiger Global joined hedge fund SRS Partners in a $134 million stock placement for eHi. At the same time, eHi's two largest shareholders, Ctrip and the Crawford Group, sold a combined 2.7 million common shares to the buyers at the same price. Ctrip and Crawford remain the largest shareholders following the sale. Crawford is the parent company of Enterprise Rent-A-Car and National Car Rental.

EHi also invested $25 million in ride-hailing service Kuaidi Dache last year prior to its merger with rival Didi Dache. Its cars are available through the Kuaidi platform.

The company has raised money from a string of venture capital investors, including Goldman Sachs, New Access Capital, Qiming Venture Partners, CDH Investments, Ignition Partners and Jafco Asia.

As of April, Crawford owned 17.2% of the company, while Ctrip had 18.5%. CDH and Qiming held 9.5% and 9.7% in the firm, respectively. Goldman had 7.9% and Ignition held 7.2%.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Consumer
• PIPEs
• Technology
• China
• Consumer
• automobiles
• PIPE
• TMT